I finally got caught up on reading 8K filings and saw that Zynga‘s acquisition of 80% of Super Giant Games Oy was in exchange for $363.5 Million in cash and 63,794,746 shares of Class A common stock. At today’s $4.40/share (if the Super Giant team and investors could sell that much on the open market at that price), that would be $280.7 Million. That’s Approximately $644.2 Million so far with an almost $50M profit from the Zynga share value increase. The remaining 20% of the company will be acquired over the next three years based on profit goals. Empires & Puzzles is amazingly well designed and it’s going to prove to be a bargain even if the total with the earn out reaches $1 Billion.

According to the 8K, Super Giant received $333,549,846 in cash (not including cash and liabilities) and $230,936,975 in Stock (@$3.62/share on December 20, 2018).  So we can derive that Super Giant still had about $32 Million in cash when they were acquired. They were

Here’s a quote from the original Tech Crunch article on the acquisition, “The company reported $33 million of revenue for Empires & Puzzles, its most popular game, 10 months after its launch in 2017.”

I think this is a fantastic acquisition by Zynga that really adds to their balance sheet and their internal capabilities.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Post Navigation